Oliver Wyman March 19, 2025
Healthcare funding uncertainty poses challenges for providers. Proactive and strategic planning is essential for long-term stability and sustainability.
Uncertainty surrounding healthcare funding is adding to financial and operational challenges facing providers. Nearly 65 % of US hospitals currently have operating margins below 3%, according to our analysis of Medicare cost reports. Policies being debated in Washington, D.C., ranging from Medicaid funding to tariffs, will have additional implications for the sector’s financial stability, to the point of eliminating some health system’s margins entirely.
A combination of various federal proposals could result in up to 300-basis-point adverse margin impact on health systems if no mitigating action is taken, based on a preliminary analysis by Oliver Wyman. The projections were modeled on a...
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